Sarah Pierre was in Germany for a wine industry trade show last month, but the atmosphere was not festive.
President Donald Trump had just threatened 200% tariffs on European wine as part of an escalating trade war. Pierre and thousands of other wine industry representatives were stunned. A 200% tariff would cripple businesses on both sides of the Atlantic, she said.
“It was terrifying,” she remembered. “It was doom and gloom.”
Trump later reduced his proposed tariffs to 20%, and even those are on hold for 90 days. But a 10% tariff on almost all imported goods remains in effect.
Pierre’s unease also has lingered.
She opened 3 Parks Wine Shop in 2013 and has locations in Atlanta’s Glenwood Park and Old Fourth Ward. She and 11 employees sell wines from across Europe, the United States and elsewhere. She is one of about 47,000 wine retailers across the United States who employ about 200,000 people, according to the National Association of Wine Retailers.
Pierre caters to casual drinkers as well as to wine aficionados. She loves the business but said “the margins aren’t that high.”
That’s why even a 10% tariff will hurt.
Pierre hasn’t seen the effects yet. Anticipating Trump’s move, she said wine importers and local distributors stocked up.
But those stocks will dwindle over the next few months. And with talk of a recession, Pierre said some customers are already cutting back. Someone who might have bought a $75 wine is now spending $50 or $25.
“Anyone paying attention is being a little tighter than they have been,” she said.
Pierre said the industry can absorb 10% tariffs. Winemakers, importers, distributors and retailers like her can each take a little hit.
But the threat of larger tariffs remains, and other countries are already retaliating. Canada, the top export market for U.S. wine, has stopped selling it. That hurts American wineries and distributors, Pierre said.
“Nothing about (wine tariffs) benefits us in America,” she said. “Not one bit.”
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